CANVAS SCHOOL PROJECT

By Lyubov’ I. GovorinaAlexandr A. Prokopiev

Problem

What do we have now?

• Obsolete approach to children education• Pupils worsen their health in school• Education don’t correspond to real world• School education is one-sided• Lots of children and parents are unsatisfied with school education

• Fresh look on education based on classic approaches• Pupils understand importance of living green• School education is many-sided• Pupils health strengthen in school• Education is not only useful, but interesting• School education prepare children to live in our World

How could it be in future?

Market opportunities

2008

2007 2008 2009 2010

40

45

50

55

60

65

90

91

92

93

94

95

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98

Amount of pupils, thousandsAmount of schools

Amou

nt o

f pup

ils, t

hous

ands

Amou

nt o

f sch

ools

• There are few private schools in Irkutsk, Russia

• Number of school is decreasing• Number of pupils is increasing• Many parents are unsatisfied with

quality of their children education• Overcrowded schools give

ineffective education• Quality of school’s education is

rising slow

Nature renewal

CS

Canvas School (CS): is a social project has environmental approach is aimed at complex

education improves the quality of

education has diversified curriculum

and extra curriculum activities

Canvas School Description

Architecture & design

RecyclingSaving energy

Objectives

To teach children how to live green and to develop in sustainable way

To increase the standard of education

To help children to develop in harmony

To make a feasible step toward environment protection

To increase the awareness about ecological problems among the local community

Educational process

ScienceScience

Basing on ISO 14001:2004, environmental management systems

ArtArt

Ecological activitiesEcological activities

Physical educationPhysical

education

1 2

4 3

Business benefits

Improved quality of education

Improved networking among local community

Improved educational environment

Improved labor conditions for teachers

Improved school administration

Project deliverables

School building project

Receive approvals for launching the school

New desks, bookcases, textbook,

visual aids, and writing materials

Hire teachers and other staff

Finish eco-school activities

Intake pupils and students

Prepare the building of the

school to the new academic year

School documentation

Estimated Project duration:1,56 years

Target of project: Completed school, that ready to start new academic year

1 2 3

4 5 6

7 8

Capital Expenditures

€ 12,500€ 250,000€ 1,750,000

€ 73,450

€ 4,375€ 112,500

€ 92,500Architect project of school Land for building School building & decoring Equipment

Initial Marketing Buy 3 buses Risk Management Budget

Total: € 2 202 825

Receive approvals to launching the school

Accreditation

License

License means that school have right to educate pupils.

Accreditation approves that school’s study program and study process meet governmental requirements.

Personnel

Opening 2 3 4 5 Next years05

1015202530354045

30 30 31 32 33 3329 30

41 42 43 44

9 9 9 9 9 9

Necessity in personnel

Staff Teachers.Full-time Teachers.Part-time

Years

Am

ount

of w

orke

rs

Eco-school activities

Establish eco-

committee

• directs the operation of the eco-school program

Conduct environmental

review

• helps to understand the current ecological situation

Develop action plan

• is the core of the school’s work

Develop environmental

policy

• is correlated to environmental performance

Develop eco-code

• mission statement

Eco code

Curriculum

SpecialCourses

ExtraCurriculu

m

Curriculum for CS pupils

Elementary emphasis on art logic & creativity practical experience

Secondary emphasis on science advanced science hobby groups

Senior advanced science preparation for exams

vocational guidance

Necessary for

government

Pupils

• In the CS will study pupils from 11 years• There are 4 classes in one year, from 10 to 15 pupils in each class• When school is open, it will intake 1-6 years of pupils• Every year school will intake first class

Opening 2 3 4 5 Next years0

100200300400500600700

240280

320360

400440

360420

480540

600660

School Occupancy Rate

MinMax

Am

ount

of p

upils

Prepare school to new academic year

Buy textbooks Buy furniture

Buy writing materials Hire teachers & intake pupils

Financing. Cash Flow

For 10 years of functioning Company will generate following cash flows:

Year 1 2 3 … 9 10Income 729 000 910 035 1 112 843 … 2 296 356 2 457 101 EBITDA 157 659 291 343 392 127 … 1 309 487 1 401 151 Taxes 49 020 79 827 106 188 … 222 421 237 990 Net income -6 318 96 303 170 451 … 970 540 1 046 508 Free CashFlow

180 639 211 516 285 939 …

1 087 066 1 163 161

Investments for our project (€ 2 202 825) will return in 5,4 years, after that we will save money for further investment in building of new school. Taking Russia level of inflation into account cost of this type of project will be approximately 4 millions Euro in 10 years.

Ratios

This project plans to have following financial ratios for 10 years:

Internal rate of return: 3,66% It is good rate for private school and this type of business in Russia

Net Present Value: € 530 360 Total profit that will generate company

Discounted Payback Period: 9,7 years

It shows that discounted cash flows will return to investor in the end of this period

Payback Period: 5,4 yearsInvested money will return to investor in the end of this period

Gross margin for 1st year: 23,15% These ratios show that business is financially stable

Gross margin for 10th year: 57,94%

Financing. Budgeting

Local authorities CS founders

PUBLIC-PRIVATE PARTNERSHIP

Develop:• objectives• budgetControl

Finances

Buy and use:• buildings• equipment• business processes• personnel

Competences

Benefits: acquire enough

money reduce project risks

Risk map

10. Conflicting priorities of project members11. Natural disasters

1. Lack of funding3. Project reject by municipal office4. Not receiving license

2. Being over budget

6. Lack of labor resources

5. Abrupt increase in prices of non-labor resources

8. Labor and non-labor cost overrun

7. Schedule overrun - late

9. Inconsistent communication between project members

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1

2

3

4

Likelihood

Cons

eque

nce

CS Marketing

Web-site

Periodical magazines

Web promotion

Banners

Event marketing

MarketingMarketing

Marketing Expenses

Initial Marketing Expenses Expenses, €

1. Website creation 375

2. Articles in a magazine 1500

3. Banners outdoors 1500

4. Event marketing 1000

Event marketing is an ecologically themed activity to promote the Canvas School

Initial per year3000

3500

4000

4500

4375

3700

Marketing expenses

Euro

, €

What have already been done & Next steps

Already done:• Problem of financing is solved• Meeting with PPP

representatives in Irkutsk• Meetings with school teachers• Pro forma income statement• Pupils, Personnel, Marketing and

Capital Expenditures calculations• Risk-plan & Risk register• Project WBS & Gant Chart

Next steps:• More detailed calculations of

revenues and expenses • More thorough analysis for

determining the price of studying at CS

• Choose the location of the school

• Obtain the necessary funding• Execute the project following

the WBS

WBS & Gant chart

It shows sequence of tasks that needs to done to execute the project

Future starts with us and our children

Thank you for looking through our project,We will answer any questions below